Taqa posts Dh13.1b revenues in 9 months

Abu Dhabi National Energy Company — Taqa — reported on Thursday revenues of Dh13.1 billion for the for the nine-month period ending in September, down 3 per cent compared to the same period last year.

Revenues from the company’s power and water segment was Dh8.7 billion, while its oil and gas revenues stood at Dh4.4 billion, 9 per cent lower compared to the previous year, with the company putting that down due to lower volumes and realised prices in Europe.

The group reported consolidated net profits of Dh925 million, down 21 per cent, with Taqa’s share of profits down 54 per cent at Dh198 million compared to the same nine-month period last year. The company said that consolidated net profit was negatively impacted by unfavourable mark-to-market movements generated by an energy price reduction and the reimplementation of the regional greenhouse gas initiative in New Jersey which impacted Red Oak, the Group’s US-based power asset.

Headwinds

“Taqa’s results for the first nine months of 2019 come amid headwinds for the hydrocarbon industry and continue to be bolstered by strong and stable performance in our power and water business,” said Saeed Mubarak Al Hajeri, chairman of Taqa.

In addition, the group continues to reduce its debt position while maintaining strong liquidity. Our recent 30-year bond issuance and the overwhelming demand seen from investors is testament to the stability of our overall business. Moving forward, we remain positive about greater opportunities to grow our power generation and water desalination business to achieve sustained growth,” he added.

Taqa’s liquidity as of 30 September 2019 remained strong at Dh11.2 billion.